While purchasing a property through mortgage finance, the Central Bank of the UAE (CBUAE) regulations stipulate that banks and financial institutions must ensure a minimum buyer contribution
Question: I have seen advertisements on social media claiming 100% financing for properties in Dubai. Is this legal here? Please advise on the financial requirements before buying a property in Dubai.
Answer: In the UAE, while purchasing a property through mortgage finance, the Central Bank of the UAE (CBUAE) regulations stipulate that banks and financial institutions must ensure a minimum buyer contribution.
Article 3 of the UAE Central Bank Regulations on Mortgage Loans (Notice No. 226/2013) states:
“The maximum loan-to-value (LTV) ratios are as follows:
A. UAE nationals
• First House/Owner Occupier
Each borrower can only claim one property under this category.
a. Value of property less than or equal to Dh5 million – maximum 85 per cent of the value of the property.
b. Value of property more than Dh5 million – maximum 75 per cent of the value of the property.
• Second and subsequent house or investment property – 65 per cent of the value of the property, regardless of value.
B. Expatriates
• First House/Owner Occupier
Each borrower can only claim one property under this category.
a. Value of property less than Dh5 million – maximum 80 per cent of the value of the property.
b. Value of property more than Dh5 million – maximum 70 per cent of the value of the property.
• Second and subsequent house or investment property
60 per cent of the value of the property, regardless of value.
C. All categories – Property purchased off-plan
Given the long-term nature of the development process and the higher level of risk to completion, the maximum LTV for mortgages on property being purchased off-plan is 50 per cent regardless of purpose, value, or category of purchaser. ”.
Therefore, the “claiming 100 per cent financing for property” offer may not be legally permitted when financing through a bank mortgage, as the buyer’s contribution is mandatory under Central Bank rules.
However, it may be permissible if a property developer offers a payment plan to potential buyers, where a buyer only pays instalments directly to the developer without a mortgage.
Such developer financing or easy payment plans are commonly applicable for off-plan sales and are not considered bank loans and may fall outside the aforesaid Central Bank of the UAE mortgage regulations.
It is, however, important to fully understand the payment schedule and handover terms and whether there are any hidden finance charges levied by the developer.
In accordance with the aforementioned provision, property developers may offer 100 per cent financing, but potential buyers should exercise due diligence.
Source: Khaleej Times
Published: 22 February 2026
